As per the Department of Commerce’s (“Commerce”) notices published on October 31, 2023 in the Federal Register, Commerce has initiated new antidumping duty (ADD) and countervailing duty (CVD) investigations on aluminum extrusions.
Commerce is also requesting comments by November 13, 2023 on the scope (product coverage) and product characteristics of the investigations. The ADD investigation Notice covers aluminum extrusions from China, Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Korea, Malaysia, Mexico, Taiwan, Thailand, the Republic of Turkey, the United Arab Emirates and the Vietnam, and the CVD investigation Notice covers aluminum extrusions from China, Indonesia, Mexico and Turkey. The ADD rates alleged in the Petition range from 33.79% to 256.58%. The CVD rates are not known yet.
The new AD/CVD investigations significantly expand potential AD/CVD duties beyond the current AD/CVD orders on aluminum extrusions from China both in terms of countries of production covered and the description of products falling within their scope. For example, while “finished goods kits” (finished goods containing aluminum extrusions entered unassembled in a kit, so long as they contain goods other than aluminum extrusions and fasteners) are excluded from the scope of the current AD/CVD orders on aluminum extrusions from China, the scope of the new investigations contains no such exclusion and in fact specifically states that it covers aluminum extrusions that are imported with non-extruded aluminum components beyond fasteners, whether or not assembled at the time of importation, so long as they are a part or subassembly of a larger product or system. Thus, items such as furniture parts or subassemblies, appliance parts or subassemblies, motor vehicle parts or subassemblies, trailer parts or subassemblies, window and door parts and subassemblies, fence system parts and subassemblies, and shower and bath parts and subassemblies are all specifically included. The scope language, which is long, broad, and complex, can be found in the Appendices to the Federal Register notices.
While the petitioners have already revised the scope language twice since the petitions were filed on October 4, Commerce has expressed continuing concerns related to the administrability of certain provisions in the proposed scope, including the definition of subassemblies (included within the scope as currently drafted) and goods that are not a part or subassembly of a larger product or system (excluded from the scope as currently drafted). To aid in its process of evaluating the scope, Commerce is accepting comments until November 13, with rebuttal comments due by November 24.
Thereafter, the next key dates in the investigations are the dates the International Trade Commission (ITC) and Commerce publish the preliminary determinations in the Federal Register. The ITC will first issue their preliminary determination as to whether the in-scope imports are injuring or threatening to injure the U.S. Industry, which is due by November 20, 2023. If the ITC’s preliminary determination as to injury is affirmative, the Commerce will publish preliminary determinations as to the AD and CVD duty margins, which in the case of the ADD investigation is due to be made on March 12, 2024 and in the case of the CVD investigation is due to be made on December 28, 2023. These dates are the “usual” effective dates for imposition of ADD and CVD but can be made retroactive 90 days if “critical circumstances” are found to exist which means that massive imports of subject products occur prior to the preliminary determination dates designed to avoid any new ADD or CVD. Thus, if critical circumstances are found to exist by Commerce, ADD could be imposed starting December 13, 2023 rather than March 12, 2014 and CVD could be imposed starting October 24, 2023 rather than December 28, 2023. These deadlines can be and frequently are extended as a result of extensions granted to the parties during the investigations. Thus, if extensions are granted, the preliminary determination dates would be extended by the amount of the extension(s).
If you would like further information or assistance in drafting and filing comments with Commerce or have any other questions regarding the scope of the ADD and CVD investigations, please contact Jessica Rifkin (jrifkin@ofwlaw.com), Tom O’Donnell (todonnell@ofwlaw.com) Lara Austrins (laustrins@ofwlaw.com) or Denise Calle (dcalle@ofwlaw.com).
